Conglomerate affiliates edge up from last monthAffiliates belonging to 63 major conglomerates numbered 1,676 as of this month, according to the Fair Trade Commission on Friday - one more than on Dec. 1.
According to the FTC report, 18 new affiliates were either created or were bought by major conglomerates such as SK Group, LG Group and Lotte Group. During the same month, 17 affiliates owned by Samsung Group, Doosan Group and KT Group had either been sold off or closed down.
Among the new additions, 12 were newly created and four were merged through stock purchases. Out of the 17 companies that were no longer members of major conglomerates, five were closed for business, two merged within a larger conglomerate and seven saw their stock sold off.
Lotte Group had the largest number of newly added affiliates last month. These included Hyundai Logistics, which the conglomerate took under its wing with stock purchases.
SK Telecom, on the other hand, now has two additional affiliates. It bought stakes in the cosmetics manufacturing company Bioland and created a new affiliate in North Jeolla that will be in charge of cooling and heating.
LG has also added two more affiliates: one solar energy company and one cosmetics company.
Steelmaker Posco created a company that specializes in constructing and managing government-leased apartments.
KT Group had the largest number of affiliates that were either sold off or merged with other departments or affiliates. It now has three less affiliates compared to the beginning of last month.
Samsung Group finally closed the book on a start-up founded by the conglomerate’s vice chairman and heir-apparent Jay Y. Lee. The company was founded in 2000 at the height of the dot.com boom in Korea, but has recently turned into nothing but a paper company.
BY LEE HO-JEONG [firstname.lastname@example.org]